Empirical analysis shows positive impacts of islamic finance and foreign aid on poverty reduction in african countries, suggesting new pathways for socioeconomic growth.
Key Points
Islamic finance development significantly reduces poverty, highlighting its unique features and ethical underpinnings.
The study identified positive relationships with foreign aid and government budgets, emphasizing their roles in alleviating poverty.
Utilizing panel system generalized method of moments (SGMM) estimation technique, the research controlled for external factors.
The findings underscore the importance of integrating islamic finance into poverty reduction strategies for sustainable growth.